‘There’s no such thing as corporate citizenship,’ Chamber of Commerce economist says

President Obama has accused American companies that move their headquarters overseas to escape U.S. taxes of being “corporate deserters” that have renounced their “U.S. citizenship.” He has called on them to practice good corporate citizenship by remaining in the U.S.

But there’s just one problem with that.

“There is no such thing as corporate citizenship,” says Martin Regalia, chief economist for the U.S. Chamber of Commerce, the largest business group in the country. “They are not afforded the same sort of voting and political activities that individuals are.”

The longtime chief economist of the chamber says the first obligation of companies is to remain in business by honing their competitive edge. An outdated and unfair tax code makes it harder for American companies to do that, especially when facing foreign rivals who pay lower tax rates.

“The point is, companies respond to the numbers. The tax code in our country makes US companies less valuable than foreign companies operating in the same markets,” he said.

“Let’s look at the tax code. Let’s look at what causes companies to do this,” he added. “And let’s see what’s the best way to fix that so it puts our companies on a competitive footing but at the same time raises enough money to run our government.”